INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

Summary of Deferred Tax Assets

The tax effect of items that give rise to the deferred tax assets and liabilities at December 31, 2012 are as follows:

	December 31, 2012			December 31, 2011(a)
Deferred tax assets:
Net operating loss carryforward	$	15,221,763		$	12,107,606
Stock-based compensation		1,965,593			1,100,534
Reserves deductible in different periods		9,471			4,504
Total deferred tax assets		17,196,827			13,212,644
Deferred tax liabilities:
Fixed assets		(472,127	)		(391,721	)
Less: valuation allowance		(16,724,700	)		(12,820,923	)
	$	-		$	-

(a)   Restated

Reconciliation of Differences between Effective and Statutory Income Tax Rates

A reconciliation of the differences between the effective and statutory income tax rates is as follows:

	December 31, 2012					December 31, 2011(a)					December 31, 2010(a)
Federal statutory rate	$	(3,406,340	)	35.0	%	$	(2,637,229	)	35.0	%	$	(1,668,694	)	35.0	%
State income taxes – Idaho		(37,982	)	0.4	%		(29,406	)	0.4	%		(18,606	)	0.4	%
State income taxes – Utah		(227,169	)	2.3	%		(175,877	)	2.3	%		(111,285	)	2.3	%
Change in valuation allowance		3,903,777		(40.1	%)		2,743,022		(36.4	%)		1,799,551		(37.7	%)
Non-deductible expenses		(232,287	)	2.4	%		(84,110	)	1.1	%		(42,053	)	0.9	%
Miscellaneous		-					183,600		(2.4	%)		41,087		(0.9	%)
		-		0	%				0	%		-		0	%

(a)   Restated